Working out on elements of Bitcoin cryptocurrency, the Government of India has finally moved towards compliance.

A recent report from CNBC India, including a committee of finance ministry officials, IT ministry officials, NITI Aayog, and Reserve Bank officials, moved a step closer towards the legalization of virtual currencies in India.

By the end of July, the Inter-Disciplinary Committee’s report is expected to announce. After that, the Securities and Exchange Board of India (SEBI) are allowed to step in to regulate transactions.

RBI is going to issue guidelines, related to investment and purchase of Bitcoins.

Through Bitcoins, when international payment is made. It is considered under the purview of FEMA Act.

ROI in Bitcoins are likely to be taxed.

The interesting thing is - the news comes around the same time, as the Bitcoin trade analyst, Chris Burniske emphasized - which includes trades from India accounted for 10% of global cryptocurrency trade, in May.

In simple words. Where India still thinking over legalising cryptocurrency, China’s central bank — the People’s Bank of China — has developed a prototype of a cryptocurrency that is likely to end up circulating it in next few years. Perhaps, it will be introduced alongside the China’s primary currency - Renminbi or Yuan. However, China is working out on possible scenarios and organizing mock transactions with the help of cryptocurrency, including some commercial Chinese banks.

After Cryptocurrency - Bitcoin and The Indian Government

Despite the lack of guidelines in the Indian digital currency industry over the past few years, a few Bitcoin exchanges raised up and initiated to operate with self-regulated trading platforms keeping strict Know Your Customer (KYC) and anti-money laundering systems in place. Zebpay, Coinsecure and Unocoin are some startups, included in.

Funding has been raised by these startups from investors. Alongside, working hard on building faith in the Bitcoin and digital currency sector, despite skepticism from the government.

On disruptions in financial technology, a financial stability report RBI has been published in 2015. It stated the importance of ‘private blockchains’ included the ability to transform the function of bank`s back-end operations while increasing the speed of payments. However, the statement of a bank is potential to fight counterfeiting - defining that the blockchain will bring a major transformation in financial market functioning, collateral identification, and payments systems.

Impact - Bitcoin Legalization in India

Increasing trading volumes and Bitcoin activities by significant margins are the initial impact expected after the legalization of Bitcoin in India. Legalization is likely to enable Bitcoin startups to report concerns over security and risks originates due to Bitcoin use, eventually, work towards the improvement of its infrastructure.

Further, legalization helps in eliminating apprehensions around its consistency for the average Indian consumer. Whereas, there are some reports of Bitcoin trading equivalent to money-laundering that propagates the financing of terrorist outfits.

In order to get a sigh of relief from these fears, Bitcoin startups in India are executing multiple security checks. All Bitcoin companies seek a valid ID proof from users that include government-verified address documents, a Permanent Account Number (PAN) or an Aadhaar number.

Scope: Bitcoins and Cryptocurrency

With the decision of the government to legalize it, the service providers of Bitcoin are able to expand the scope of usage. Presently, Bitcoins are useful in making purchases via mobile apps, buy gift vouchers, for airtime top up, and even for paying bills. By 2018, an enhanced structure is likely to support the transfer of funds occurs in the county while providing other online financial solutions for India`s unbanked and underserved population.

With the help of Bitcoin, it`ll become easy to send a small remittance back home and save a fee up to billions paid to third parties for a country, like India - known as the largest remittance market in the world at over $60 Bn annually.

In a country, like India, the time is perfect to leverage the Bitcoin revolution, especially through the roof, when Bitcoin prices are surging. Few month ago, all previous records have been Bitcoin broken out - as the new milestone is achieved. For the very first time in history, the rise in the value of Bitcoin - reaching $2,000 per coin.

Japan legalized the currency in mid-March - is the reason behind this achievement. Hence, the success in Bitcoin trade - not only affected Japan with Bitcoin prices, also led to a global surge in prices.

India And Concerns Over Bitcoin

The future – 2018 with Bitcoin seems to be promising in India. India counts over 1 Million Bitcoin Users, as per the reports of BitConnect. In fact, thousands of new users flocking to Bitcoin every day in India, overwhelming exchanges are getting downtime while the processing of transactions become slow. With over 500,000 downloads of the mobile app, as per the reports of Zebpay. Also, it is adding about 2,500 new users every day.

Simultaneously, there are abundant doubts about Bitcoins. Vice President at Spice Digital Limited - Snehil Khanor stated, “Being a citizen of India, a little apprehensive I am about investing a large amount in Bitcoin. Because there is no fixed guarantee of the kind of taxes - the return will attract. And when I can withdraw?

At present, three reliable exchanges are only there in India. With its legalization - more reliable companies are likely to get into this. Therefore, the growing contribution will lead to more reliable exchanges and more trade in Indians by 2018.

Indeed! If the government and RBI legalize it, the apprehensions of Indian Bitcoin traders will hopefully be taken care of. Thus, helping Indians to legally partake and reap benefits from the global phenomena of Bitcoins and the underlying technology of BlockChain.

Even globally, there is a long way - Bitcoin has to go. You might be willing to know how long?

Well, howmuch.net described a best answer: Bill Gates’s net worth at $86 Bn is 2x timed the market capitalization of the Bitcoin market at $41 Bn!

Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .